Penny Stock Columns on the OTCBB

Contracts – The Business Language of Revenue

04-11-2008

by Brian Kline

Businesses have to start at the top line to get to a healthy bottom line. What goes into the revenue line is defined by contracts and sales.

Today’s column examines five companies announcing new contracts and sales that are important to both their top and bottom lines. Four of the five saw their share prices rise following the announcements

Micromem Technologies (MMTIF) develops specialized MRAM, sensors, and RFID applications for the aerospace and defense market sectors. The company’s products operate in radiation hardened non-volatile memory applications.

Micromem Technologies has contracted with defense giant BAE Systems to begin producing its sensor technology at BAE’s Nashua, New Hampshire foundry facility. The plan is for integration of Micromem's patented technology into the BAE Systems military platforms and product pipeline. President and CEO, Joseph Fuda stated, "This partnership is the ultimate technical validation that Micromem has been looking for. To partner with a global leader such as BAE Systems is the ideal situation for Micromem and the successful productization of our technology.”

Heartland (HTLJ) engages in the steel fabrication, and property construction and management industries. The Steel Fabrication segment manufactures and installs structural steel, miscellaneous metals, steel stairs, railings, bar joists, and metal decks. The Construction and Property Management segment is a general contractor in the greater St. Paul and Minneapolis area, as well as owns and manages industrial property in Ohio.

During the first quarter of 2008, Heartland contracted over $6,000,000 in new orders. The new jobs include a good mix of industrial and institutional work. Future company plans include entry into the oil distribution business.

NuTech (NTDL) licenses and distributes general entertainment products through DVDs. It is also involved in producing, filming, and distributing music concerts. Additionally, the company markets its proprietary digital video equipment providing real time 2-way video, unlimited channel capacity for entertainment television, and many other telecommunications services and products.

This week NuTeach received an initial $1,000,000 payment from a new licensee towards a joint venture providing 2Way Video, Video On Demand, Entertainment Programming, Internet Access and Voice over IP to apartment complexes, campuses, hotels and other multi-dwelling facilities in the United States. The joint venture is expected to produce additional revenue from sales of set top boxes and about $5.00 in subscription fees per dwelling per month.

WiFiMed Holdings (WIFM) provides proprietary solutions enabling physicians and other healthcare providers to document the physician-patient encounter. Its products assist physicians and healthcare providers to manage patient workflow; and to reduce medical errors, documentation time, overhead, and time spent filing insurance claims. Its software products operate on a tablet PC and manage patient medical information, consultation notes, prescriptions, records, and charts.

WiFiMed realized a ten-fold increase in the number of licenses sold of its proprietary product, EncounterPRO® EHR, in the first quarter of 2008 versus the same period a year ago. The increase in sales is from new clients only and does not include renewal and additional license sales from existing clients. CEO Gregory Vacca commented, “This increase is especially significant due to the fact that the first quarter is historically the slowest quarter for us and confirms the potential for drastic sales increase, through both direct and cross-selling initiatives, for the company’s product line.”

Universal Detection Technology (UDTT), in business since 1971, engages in the research and development of bioterrorism detection devices. The company primarily offers the BSM-2000 device, an automated real-time bacterial spore detector, used for detection of abnormal levels of airborne endospores, such as anthrax. BSM-2000 is designed to provide unattended monitoring of airborne bacterial spores in public places, with real-time automated alert functionality. The company’s products have been approved by the U.S. Environmental Protection Agency

With global distributors in Italy, China, and Qatar, the company announced two new contracts. The most recent was its second purchase order from a Quiznos Restaurant franchise. The order is for Vital Oxide, a product that kills the super bacteria found in MRSA. The same product was also recently chosen by Princeton University to protect against MRSA outbreaks in gyms and locker rooms.

The writer does not own shares in the above stocks.

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